LINCOLN, Neb. (DTN) -- The state of Arizona sued a Saudi-owned company on Wednesday, alleging Fondomonte Arizona, LLC, violated state nuisance laws by "excessive" groundwater pumping at its dairy operation in western Arizona.

The dairy owned by Almarai Company reportedly has stopped pumping groundwater and has moved out of the state, according to the state's Gov. Katie Hobbs.

Hobbs announced on March 7, 2024, that the state terminated the company's leases and stopped the groundwater pumping in the Butler Valley. Hobbs said the company was no longer irrigating. The company caused a controversy when it came to light that it was allegedly growing forage and shipping it to back to Saudi Arabia to feed cows.

The lawsuit filed by Arizona Attorney General Kristin K. Mayes in Maricopa County Superior Court said the company's groundwater pumping has caused a "significant decline" in groundwater levels in the Ranegras Plain Basin.

"Since 2014, Fondomonte has pumped massive amounts of groundwater to support its operations which consist primarily of growing alfalfa," the lawsuit said.

"Fondomonte's groundwater pumping has substantially accelerated the dewatering of the Ranegras Basin. As groundwater levels have declined, the land has subsided, threatening the water supply of residents and contributing to the decline in water quality. Fondomonte's actions constitute a public nuisance and must be enjoined."

Fondomonte's parent company, Almarai Company, did not respond to DTN's request for comment.

"Fondomonte's unsustainable groundwater pumping has caused devastating consequences for the Ranegras Plain Basin, putting the health and future of the residents of La Paz County at risk," Mayes said in a statement. "Arizona law is clear: no company has the right to endanger an entire community's health and safety for its own gain."

Although the company lost its leases from the state, Fondomonte applied for and received approval for a new well on its dairy last summer.

Currently, about 80% of the state does not regulate groundwater. Since 2014, the lawsuit alleges, Fondomonte pumped "extraordinary amounts" of groundwater including about 31,196 acre-feet in 2023 alone.

"This case is the result of a legislative failure to address a water crisis with catastrophic effects on the groundwater level in the Ranegras Basin," the lawsuit said.

"The decline in the groundwater level has negatively impacted and will continue to negatively impact the Ranegras Basin's water supply, water quality and land, leading to substantial adverse effects on the community's health and safety. These catastrophic effects will be felt by the entire community within the Ranegras Basin for generations."

The lawsuit said that without water in the basin residents would be "forced to abandon their land and homes" and would be "placed in grave danger."

The state said Fondomonte was equipped with pumps capable of pumping up to 4,000 gallons per minute. As a result, since 2014 a well less than a mile to the east of the operation went dry about five years ago, as did another well in 2017.

"Already-observed instances of land subsidence, water quality degradation and a rapidly dropping water table are only the beginning," the lawsuit said.

"As Fondomonte continues to extract enormous amounts of groundwater the very survival of the Ranegras Basin and the community relying on the Ranegras Basin for groundwater is at risk. Without intervention, the Ranegras Basin's community is vulnerable to continued and worsening groundwater shortages, water quality decline, subsiding land, damage to infrastructure and degraded equipment."

Todd Neeley can be reached at todd.neeley@dtn.com

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